Infosys Q2 Deal Wins Reach $5.2 Billion; Guidance Cut

Infosys Limited reported strong large-deal wins in Q2 FY27, but lowered its full-year revenue growth guidance amid continued uncertainty in client spending. Q2 FY27 Financial Performance Revenue: ₹49,244 crore, up 10.7% YoY Net Profit: ₹7,823 crore, up 6.2% YoY Operating Margin: 21%, unchanged YoY Large Deal Wins: $5.2 billion, compared with $3.6 billion in the previous quarter Net-New Business: 62% of the total deal value FY27 Revenue Guidance Cut Infosys revised its FY27 revenue growth forecast in constant currency terms to 1%–2%, from the earlier guidance of 1.5%–3%. The company retained its operating margin guidance at 20%–22%. AI Business Shows Strong Growth AI-related revenue accounted for 10.5% of total revenue. AI revenue grew 29% quarter-on-quarter. The company highlighted a mega deal worth more than $2 billion, supporting its large-deal pipeline. Why Is the Guidance Cut Important? Despite strong deal wins and rising AI revenue, Infosys continues to face cautious client spending, particularly in North America. Large contracts provide business visibility, but their conversion into revenue depends on project ramp-ups and execution. What Investors Should Monitor Investors should track revenue growth in constant currency, conversion of large deals into revenue, AI-related business growth and operating margins. Investor Perspective: Strong deal wins and AI momentum are positive, but the lower revenue outlook signals that demand conditions remain challenging for the IT services sector. Disclaimer: This content is for educational and informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consider their risk profile before making any investment decision.